BU387 Chapter Notes - Chapter 9: Expected Loss, Financial Statement, Income Statement
Document Summary
Kc firm purchases 1000 shares of abc at . 25 per share on march 8 2017. A 1. 5% commission is charged on the transaction. 2017 abc declares a sh. 10 dividend per share on dec. 31. On july 11, 2018, kc sells 800 shares of abc at . 08 per share and pays 1. 5% commission. : discount of is not recorded separately, it is amortized over the life of the bond, aspe use straight line method of amortizing premium or discount. Ifrs use the effective interest method to amortize the premium/discount: the discount/premium is amortized to interest income in equal amounts over the lifespan of the investment, ex. To record the receipt of the first semi-annual interest payment on july 1, 2017: at year end, august 31,2017 they will recognize interest income that has accrued since july 1, 2017- 11-17: when the interest payment is made on january 1, 2018 the following entries are made reporting under amortized cost model.
